Vietnamese frozen pangasius fillets in high demand in Brazil
Frozen pangasius fillets are a major export product for Vietnam, with Brazil being a key market that mainly imports these fillets and fewer other products.
Data from Vietnamese Customs reveals that in the first half of July 2024, Vietnam’s exports of pangasius to Brazil totaled over $4 million, marking a 4% increase compared to the same period in 2023.
As of July 15, 2024, cumulative exports amounted to $58 million, up 38% from last year, making Brazil the third-largest market for Vietnamese pangasius, after China and the U.S.
In Q2 2024, Brazil focused exclusively on importing frozen pangasius fillets (HS0304), with an import value of $26 million, a 39% rise from Q2 2023.
In the first six months of this year, the total import value of this item reached $53 million, up 41% from the same period in 2023, representing 99.8% of the total import volume. January 2024 saw the highest purchase of frozen pangasius fillets by Brazil, exceeding $14 million, an 83% increase compared to January 2023.
For dried pangasius and other frozen products (whole fish, cut portions, pangasius swim bladders, etc.), Vietnam exported over $110,000 to Brazil in the first half of this year, a sevenfold increase from the same period last year, accounting for 0.2% of the total. These exports were primarily made in the first quarter. In Q2 2024, Brazil did not import these products from Vietnam, unlike the previous year when it imported over $14,000.
According to the International Trade Centre (ITC), Vietnam is the third-largest supplier of white fish (primarily pangasius) to Brazil, following the U.S. and Canada.
Despite the greater geographical distance between Vietnam and Brazil compared to the U.S. and Canada, Brazil continues to boost its imports of Vietnamese pangasius.
In the first half of this year, Brazil experienced a 77% increase in pangasius imports from Vietnam, with growth noted in every month. January was the peak month, with over 3,000 tons of pangasius consumed, a 183% increase from January 2023.
Although the average export price has decreased, the total value of pangasius exports to Brazil has still grown due to higher import volumes. The average price for Vietnamese pangasius in Brazil is now at its lowest in three years, since 2022.
June 2024 saw the lowest price at $2.61/kg, down 13% from June 2023 and 25% from June 2022. The average export price has been declining since April 2023 and continued to fall through the following months. Prices slightly increased to $2.71/kg in March and $2.73/kg in April 2024, but then fell again in May and June 2024.
The decrease in average export prices, coupled with increased volume, indicates strong demand for pangasius in Brazil. For 2024, Brazil’s economic growth forecast has been raised to 2.3%, up from the earlier estimate of 1.9%.
It is anticipated that Brazil will continue to increase its pangasius imports in the latter half of the year to prepare for upcoming festivals and holidays. However, significant growth in average export prices to Brazil is unlikely.
Businesses are optimistic that Vietnam and Mercosur will soon establish their first Free Trade Agreement (FTA), which could boost trade and cooperation, including pangasius exports to this market.
VFM
